157) Refer to the following selected financial information from Texas Electronics. Compute the
company’s working capital for Year 2.
Year 2
Year 1
Cash
$
37,500
$
36,850
Short-term investments
90,000
90,000
Accounts receivable, net
85,500
86,250
Merchandise inventory
121,000
117,000
Prepaid expenses
12,100
13,500
Plant assets
388,000
392,000
Accounts payable
113,400
111,750
Net sales
711,000
706,000
Cost of goods sold
390,000
385,500
A) $232,700.
B) $220,600.
C) $147,200.
D) $111,700.
E) $142,700.
158) Refer to the following selected financial information from Texas Electronics. Compute the
company’s current ratio for Year 2.
Year 2
Year 1
Cash
$
37,500
$
36,850
Short-term investments
90,000
90,000
Accounts receivable, net
85,500
86,250
Merchandise inventory
121,000
117,000
Prepaid expenses
12,100
13,500
Plant assets
388,000
392,000
Accounts payable
113,400
111,750
Net sales
711,000
706,000
Cost of goods sold
390,000
385,500
A) 2.26.
B) 1.98.
C) 2.95.
D) 3.05.
E) 1.88.
159) Refer to the following selected financial information from Texas Electronics. Compute the
company’s acid-test ratio for Year 2.
Year 2
Year 1
Cash
$
37,500
$
36,850
Short-term investments
90,000
90,000
Accounts receivable, net
85,500
86,250
Merchandise inventory
121,000
117,000
Prepaid expenses
12,100
13,500
Plant assets
388,000
392,000
Accounts payable
113,400
111,750
Net sales
711,000
706,000
Cost of goods sold
390,000
385,500
A) 2.26.
B) 1.98.
C) 2.95.
D) 3.05.
E) 1.88.
160) Refer to the following selected financial information from Texas Electronics. Compute the
company’s accounts receivable turnover for Year 2.
Year 2
Year 1
Cash
$
37,500
$
36,850
Short-term investments
90,000
90,000
Accounts receivable, net
85,500
86,250
Merchandise inventory
121,000
117,000
Prepaid expenses
12,100
13,500
Plant assets
388,000
392,000
Accounts payable
113,400
111,750
Net sales
711,000
706,000
Cost of goods sold
390,000
385,500
A) 8.62.
B) 8.28.
C) 8.94.
D) 5.78.
E) 7.90.
161) Refer to the following selected financial information from Texas Electronics. Compute the
company’s inventory turnover for Year 2.
Year 2
Year 1
Cash
$
37,500
$
36,850
Short-term investments
90,000
90,000
Accounts receivable, net
85,500
86,250
Merchandise inventory
121,000
117,000
Prepaid expenses
12,100
13,500
Plant assets
388,000
392,000
Accounts payable
113,400
111,750
Net sales
711,000
706,000
Cost of goods sold
390,000
385,500
A) 4.72.
B) 4.33.
C) 3.28.
D) 5.78.
E) 3.86.
162) Refer to the following selected financial information from Texas Electronics. Compute the
company’s days’ sales uncollected for Year 2. (Use 365 days a year.)
Year 2
Year 1
Cash
$
37,500
$
36,850
Short-term investments
90,000
90,000
Accounts receivable, net
85,500
86,250
Merchandise inventory
121,000
117,000
Prepaid expenses
12,100
13,500
Plant assets
388,000
392,000
Accounts payable
113,400
111,750
Net sales
711,000
706,000
Cost of goods sold
390,000
385,500
A) 43.9.
B) 42.3.
C) 46.2.
D) 80.0.
E) 113.3.
163) Refer to the following selected financial information from Texas Electronics. Compute the
company’s days’ sales in inventory for Year 2. (Use 365 days a year.)
Year 2
Year 1
Cash
$
37,500
$
36,850
Short-term investments
90,000
90,000
Accounts receivable, net
85,500
86,250
Merchandise inventory
121,000
117,000
Prepaid expenses
12,100
13,500
Plant assets
388,000
392,000
Accounts payable
113,400
111,750
Net sales
711,000
706,000
Cost of goods sold
390,000
385,500
A) 43.9.
B) 42.3.
C) 46.2.
D) 80.0.
E) 113.2.
164) Refer to the following selected financial information from Troy Manufacturing. Compute
the company’s working capital.
306,450
338,000
107,800
676,000
75,000
A) $536,650.
B) $230,200.
C) $568,200.
D) $198,650.
E) $231,450.
165) Refer to the following selected financial information from Troy Manufacturing. Compute
the company’s current ratio.
306,450
388,000
107,800
676,000
75,000
A) 6.44.
B) 2.84.
C) 6.27.
D) 3.60.
E) 1.44.
166) Refer to the following selected financial information from WorkFit Corporation. Compute
the company’s acid-test ratio.
Cash
$
42,250
Short-term investments
60,000
Accounts receivable, net
79,500
Merchandise inventory
115,000
Prepaid expenses
9,700
Accounts payable
111,400
A) 2.75.
B) 2.66.
C) 0.92.
D) 1.12.
E) 1.63.
167) Refer to the following selected financial information from Whirlpool Company. Compute
the company’s accounts receivable turnover for Year 2.
Year 2
Year 1
Accounts receivable, net
86,500
82,750
Net sales
723,000
693,000
A) 8.36.
B) 8.37.
C) 4.78.
D) 8.59.
E) 8.54.
168) Refer to the following selected financial information from Whirlpool Company. Compute
the company’s days’ sales uncollected for Year 2. (Use 365 days a year.)
Year 2
Year 1
Accounts receivable, net
86,500
82,750
Net sales
723,000
693,000
A) 43.9.
B) 43.7.
C) 46.2.
D) 85.4.
E) 42.7.
169) Refer to the following selected financial information from Phantom Corp. Compute the
company’s inventory turnover for Year 2.
Year 2
Year 1
Merchandise inventory
271,000
253,500
Cost of goods sold
486,400
433,100
A) 1.79.
B) 1.71.
C) 1.85.
D) 0.93.
E) 1.75.
170) Refer to the following selected financial information from Phantom, Corp. Compute the
company’s days’ sales in inventory for Year 2. (Use 365 days a year.)
Year 2
Year 1
Merchandise inventory
271,000
253,500
Cost of goods sold
486,400
433,100
A) 203.4.
B) 228.4.
C) 179.5.
D) 215.1.
E) 113.3.
171) Refer to the following selected financial information from Gomez Electronics. Compute the
company’s profit margin for Year 2.
Year 2
Year 1
Net sales
$
478,500
$
426,250
Cost of goods sold
276,300
250,120
Interest expense
9,700
10,700
Net income before tax
67,250
52,680
Net income after tax
46,050
39,900
Total assets
317,100
288,000
Total liabilities
181,400
167,300
Total equity
135,700
120,700
A) 14.1%.
B) 11.7%.
C) 9.6%.
D) 16.7%.
E) 33.9%.
172) Refer to the following selected financial information from Gomez Electronics. Compute the
company’s return on total assets for Year 2.
Year 2
Year 1
Net sales
$
478,500
$
426,250
Cost of goods sold
276,300
250,120
Interest expense
9,700
10,700
Net income before tax
67,250
52,680
Net income after tax
46,050
39,900
Total assets
317,100
288,000
Total liabilities
181,400
167,300
Total equity
135,700
120,700
A) 9.6%.
B) 15.2%.
C) 2.6%.
D) 22.2%.
E) 14.5%.
173) Refer to the following selected financial information from Gomez Electronics. Compute the
company’s debt-to-equity ratio for Year 2.
Year 2
Year 1
Net sales
$
478,500
$
426,250
Cost of goods sold
276,300
250,120
Interest expense
9,700
10,700
Net income before tax
67,250
52,680
Net income after tax
46,050
39,900
Total assets
317,100
288,000
Total liabilities
181,400
167,300
Total equity
135,700
120,700
A) 1.75.
B) 2.34.
C) 0.75.
D) 1.34.
E) 2.63.
174) Refer to the following selected financial information from Gomez Electronics. Compute the
company’s times interest earned for Year 2.
Year 2
Year 1
Net sales
$
478,500
$
426,250
Cost of goods sold
276,300
250,120
Interest expense
9,700
10,700
Net income before tax
67,250
52,680
Net income after tax
46,050
39,900
Total assets
317,100
288,000
Total liabilities
181,400
167,300
Total equity
135,700
120,700
A) 6.9.
B) 4.8.
C) 5.8.
D) 14.0.
E) 7.9.
175) Refer to the following selected financial information from Mojave Corp. Compute the
company’s times interest earned.
Interest expense
$
9,100
Income tax expense
22,700
Net income after tax
56,500
A) 6.2.
B) 2.5.
C) 8.7.
D) 9.7.
E) 3.7.
176) Refer to the following selected financial information from Winterfell Company. Compute
the company’s debt to equity for Year 2.
Year 2
Year 1
Total assets
$
327,800
$
301,000
Total liabilities
171,400
169,300
Total equity
156,400
131,700
A) 0.9.
B) 1.1.
C) 0.5.
D) 1.9.
E) 2.1.